Centurion sues over vacant Langford rental building

Roxanne Egan-Elliott
Western Investor

 The 11-storey multi-family rental tower vacant since December 2019 when the city revoked its occupancy permit after Centurion Properties had bought it

90-unit Danbrook One rental tower in Langford has sat vacant for 18 months. | Darren Stone, Times Colonist

The 11-storey multi-family rental tower vacant since December 2019 when the city revoked its occupancy permit after Centurion Properties had bought it

The owner of an 11-storey multi-family rental building in Langford, B.C., near Victoria, that has sat mostly vacant for a year and a half since the city revoked the occupancy permit is suing the seller, builder, structural engineer and engineering firm, and the City of Langford for what they claim is negligence causing dangerous defects in the building.

Toronto-based Centurion Property Associates bought Danbrook One at 2766 Claude Rd. in late August 2019 and began renting the units.

Four months later, in mid-December 2019, Langford revoked the building’s occupancy permit and urged tenants to move out after an engineering report for the municipality confirmed serious safety concerns. At the time, 86 of 90 units were rented. Tenants were temporarily put up in hotels paid for by the city while they searched for new homes. Some struggled to find apartments at a similar price and remained in the building for two months after the occupancy permit was revoked.

The building remains vacant.

Months before Centurion bought the building, a structural engineer who was not involved in the project raised concerns related to its seismic and structural integrity, in a formal complaint to the Association of Professional Engineers and Geoscientists, according to Centurion’s civil claim. Leon Plett, a structural engineer and principal of RJC Engineers, also expressed concern that the project drawings might have been copied from an RJC project.

The building’s defects include deficiencies in the foundation, lateral system and gravity column, according to Centurion’s claim. They allege the parties involved in design and construction were aware of problems prior to the sale and that the issues “pose a danger to person or property.”

The engineering firm Sorensen Trilogy Engineering Ltd. and its lead structural engineer on the project, Brian McClure are named in the suit, along with the builder, Langford-based DB Services; the seller, Loco Investments; Margaret McKay, the director of both DB Services and Loco; and the City of Langford.

Centurion is suing for damages relating to remediation work needed to bring the building up to code and address safety concerns, estimated at more than $1 million as well as lost rental income estimated to be about $200,000 per month. Just over 18 months have passed since the city revoked the occupancy permit. Centurion reimbursed tenants any rent paid for the period after the permit was revoked.

Before purchasing the building, Centurion contacted the city, which issued a “comfort letter” in late June 2019 to Centurion that did not mention the engineer’s complaint despite being informed by the association in early April 2019, Centurion says in its civil claim.

Langford denies they were made aware of defects related to the building when the engineering association contacted the municipality in April 2019 for documents.

“By letter dated April 4, 2019, EGBC wrote to Langford to advise that [it] was currently conducting an investigation in relation to the building regarding potential violations of the Engineers and Geoscientists Act,” Langford said in its response to Centurion’s civil claim. The letter “did not disclose the existence of the dangerous defects, nor did EGBC advise Langford that any safety concerns or dangers existed.”

The city says it was not aware of problems when it wrote a comfort letter to Centurion, and did not become aware until Dec. 3, 2019, when the association shared details of the complaint.

Centurion alleges DB Services encouraged parties involved in construction to “fast-track” their work, which led to Sorensen Trilogy Engineering failing to obtain a required independent review of its building design work.

The narrative outlined in Centurion’s civil claim lines up with the details in documents and emails related to the engineering association’s investigation obtained from the City of Langford by the Times Colonist through a freedom of information request.

Centurion claims they demanded that DB Services pay for all remediation work required, but the firm only installed temporary shoring.

DB Services denies defects exist and that construction was fast-tracked. It also claims a warranty did not transfer to Centurion in the sale.

Sorensen Trilogy Engineering says DB Services was to be fully responsible to Centurion “for acts and omissions” of the firm and McClure, and that neither DB Services nor Centurion paid for the liability insurance required by the contract, which would have protected Sorensen Trilogy.

None of the allegations have been tested in court.

An investigation by the engineering association is ongoing.

© 2021 Western Investor

Clive at Collingwood provides neighborhood transit and amenities at your doorstep

Livabl Staff
other

A new series of modern homes will connect future residents to the sought-after amenities and conveniences of Vancouver’s Collingwood community.
Clive at Collingwood is a collection of 68 design-minded condos and townhomes coming soon to Clive Avenue and Spencer Street. Created by the locally-based Nexst Properties, this six-storey development will root itself in the neighbourhood’s culture and community, lending easy access to local transit, eateries and so much more.
Prospective purchasers will have their pick from various home layouts ranging from 400 to 1,700 square feet in size. You can register now to find out more about sales at cliveliving.com.

Gathering places and facilities suited to all of your needs can be found right at home. Mingle with family and friends in the common courtyard or share a meal together on the rooftop barbecue terrace. The office centre is equipped to accommodate your busy nine-to-five work schedule, plus handy bicycle storage, electric vehicle charging and an Amazon Hub for secure package delivery will be available on-site at Clive at Collingwood for your convenience.

Step out into Collingwood and discover a variety of offerings at your door. Play a game on the sport courts and let the little ones explore the playground at the nearby Gaston and Melbourne parks. You’ll find cafes, restaurants, grocery stores and all of your must-have essentials just south of Clive at Collingwood along Kingsway, plus local schools, services and businesses in the surrounding area.

Walk to the Joyce–Collingwood or 29th Avenue SkyTrain stations for an easy connection to Metrotown, downtown Vancouver and adjacent neighbourhoods. Two stops to the east will bring you to Metropolis at Metrotown, where you can find all of your favourite big-name retailers like UNIQLO, Hudson’s Bay, Indigo and Winners.
Proximity to Kingsway, Boundary Road and the local bus route can also transport you to Burnaby, New Westminster and beyond.
Interested buyers are invited to learn more about Clive at Collingwood by calling 604 787 7009 or sending an email to [email protected].
For the latest information and news, register your interest today at cliveliving.com.

© 2020 BuzzBuzzHome Corp.

B.C. bud spurs Delta cannabis grower’s growth

Sandor Gyarmati
Western Investor

Pure Sunfarms prepares to double annual shipments to 150,000 kilograms to meet demand from customers across the country and beyond

Pure Sunfarms is doubling its greenhouse grow space to 2.2 million square feet. | Delta Optimist
Pure Sunfarms prepares to double annual shipments to 150,000 kilograms to meet demand from customers across the country and beyond
A large-scale cannabis greenhouse in Delta that ships B.C. bud across Canada is about to expand further.
A wholly-owned subsidiary of Village Farms International, Pure Sunfarms already has 1.1 million square feet in its greenhouse operation, having the capacity to produce 75,000 kilograms of dried flower annually for the Canadian recreational market.
Pure Sunfarms, located in Ladner, B.C., is planning to convert a second 1.1 million square foot adjacent greenhouse for production, which is expected to double the annual output capacity to 150,000 kilograms.
Current supply agreements in place include the Ontario Cannabis Retail Corporation, the BC Liquor Distribution Branch, Alberta Gaming, Liquor and Cannabis, the Saskatchewan Liquor and Gaming Authority and the Manitoba Liquor and Lotteries Corporation.
In June, Pure Sunfarms received from Health Canada an amendment to the cultivation license for its second greenhouse facility, permitting it to cultivate cannabis immediately in the half of the facility where conversion to cannabis production has been completed. 
Under the license amendment, Pure Sunfarms is also permitted to begin cannabis production in the remaining half of that facility when conversion has been fully completed.
Pure Sunfarms expects to begin planting in the completed half of the facility this September, with the first harvest expected in November. 
The cannabis producer also expects to further increase its cultivation capacity to 2.2 million square feet during the second half of 2022 upon completion of the conversion of the remaining half of the second facility.
“As many licensed producers in Canada scale back operations, we are proud and excited to be significantly expanding production to meet the expected continued growth in Pure Sunfarms’ retail branded sales, driven by Pure Sunfarms’ leading brand market share in dried flower against the backdrop of the overall growth in the Canadian market, as well as additional opportunities that we are pursuing both within Canada and in international markets,” said Michael DeGiglio, CEO of Village Farms, in a news release.
The operation also provides cannabis to other licensed producers in Canada.

© 2021 Western Investor

Nearly half of the condos in future downtown Vancouver tower sold in first two days

Kenneth Chan
other

 Artistic rendering of Two Burrard Place at 1261 Hornby Street, Vancouver. (Reliance Properties)

Is the condominium market in downtown Vancouver in the early stages of a major comeback?

There appears to be a resurgence in downtown Vancouver’s condominium market, based on the pre-sale performance of a future 368-ft-tall, 35-storey strata tower that just launched.

• See also:
• • 450-ft-tall hotel and condo tower proposed for north end of Burrard Bridge
  • Resurgence of hot condo market in Metro Vancouver just around the corner: report
  • 1970s Vancouver condo sells for 24% over asking price, with 15 offers
  • 46-storey tower with 478 rental homes proposed next to SkyTrain Burrard Station

Reliance Properties has sold over 100 of the total of 239 condominium homes at its 2 Burrard Place tower within the first two days of pre-sales.

This is a significant litmus test for the condominium market in downtown Vancouver, which has had zero successful pre-sale launches over the last four years — a slowdown period that began with the provincial government’s major interventions in the housing market to deter foreign investment and speculation.

Overall, during the past four-year period, Metro Vancouver’s condominium market softened significantly, and much of the remaining demand shifted to Burnaby, Coquitlam, and Surrey. This eastward suburban trend accelerated greatly last year when living preferences changed as a result of the pandemic, coupled with record-low interest rates. 

According to real estate intelligence firm  Urban Analytics, local developers whose projects have been in limbo are closely watching the performance of 2 Burrard Place.

“Downtown Vancouver felt the brunt of government housing policies and taxes introduced in 2018, resulting in zero successful condo launches in the core since,” said Dillon Sangha, market and advisory manager at Urban Analytics.

“Developers tried to launch, but cancelled or delayed plans after failing to achieve sufficient sales,” adding that this could increase the confidence of other developers and lead to additional project launches over the coming months.

Sangha attributes the pre-sale performance to date of 2 Burrard Place to market demand, price, and unique floor plans — smaller homes with living rooms that can be converted into bedrooms at night. Homes range in size between 435 sq ft to 1,800 sq ft. 

Artistic rendering of 2 Burrard Place at 1261 Hornby Street, Vancouver. (Reliance Properties)

Artistic rendering of 2 Burrard Place at 1261 Hornby Street, Vancouver. (Reliance Properties)

Jon Stovell, the president and CEO of Reliance Properties, describes the tower as Vancouver’s first “Euro-Luxe” condominium building — living spaces modelled after European multi-family homes.

Residents have access to 30,000 sq ft of amenities including health and wellness spa, a full-size lap pool, and yoga space.

2 Burrard Place, designed by Neil Denari of Los Angeles-based NMDA and Vancouver-based Bingham Hill Architects, will be located on a mid-block site at 1261 Hornby Street. It is the third and final tower of the Burrard Place complex on the block.

Artistic rendering of 2 Burrard Place at 1261 Hornby Street,  Vancouver. (Reliance Properties)

Immediately to the south, One Burrard Place, the third tallest building in the city, topped out at its ultimate height of 550 ft with 60 storeys early this year. This gateway tower into the downtown peninsula from the perspective of the Burrard Bridge includes about 400 condominium homes.

The complex also includes a 13-storey office building at the corner of Burrard and Drake streets, which will contain 150,000 sq ft of AAA-class office space and a new replacement location for the Jim Pattison Toyota Downtown dealership in the lower levels.

Both the main residential tower and the office tower will reach completion later this year. As for 2 Burrard Place, it is expected to reach completion towards the middle of this decade.

Construction progress on May 22, 2021: One Burrard Place (centre left) and Grosvenor’s The Pacific (centre right). (Kenneth Chan/Daily Hive)

• See also:
• • 450-ft-tall hotel and condo tower proposed for north end of Burrard Bridge
  • Resurgence of hot condo market in Metro Vancouver just around the corner: report
  • 1970s Vancouver condo sells for 24% over asking price, with 15 offers
  • 46-storey tower with 478 rental homes proposed next to SkyTrain Burrard Station

Copyright Ⓒ 2021 Buzz Connected Media Inc.

North Vancouver industrial site sells for $3.97 million

Avison Young
Western Investor

 

The site covers 0.18 acres and holds a 6,524-square-foot light industrial building in the Lynn Creek area.

Property type: Industrial

 

Location: 1484 Rupert Street, North Vancouver, B.C.

Size of property: 6,524 square feet

Size of land: 8,052 square feet

Land size in acres: 0.18 acres

Zoning: I3 (light industrial)

List price: $4.2 million

Sale price: $3.97 million

Brokerage: Avison Young, Vancouver

Broker: Matt Thomas  

 

© 2021 Western Investor

Chinatown businesses battle back

Chuck Chiang
Western Investor

Resilient Vancouver community aims to clean up and pivot from a pandemic-induced ‘tipping point’

Food markets open longer as shoppers, visitors filter back into Vancouver’s Chinatown. – Chung Chow
Resilient Vancouver community aims to clean up and pivot from a pandemic-induced ‘tipping point’
The pandemic and the resulting decline in office-worker numbers, retail foot traffic and tourists seriously dented business in Chinatown since early in 2020.
But the historical community is poised to rebound as the pandemic struggle has abated with the end of the circuit-breaker health regulations, officials say.
Jordan Eng, president of the Chinatown Business Improvement Association (BIA), said June’s stretch of warm weather has brought a surprising number of patrons out to the neighbourhood’s restaurants and bars – especially in the early evenings.
“I did an interview on TV on a Tuesday night, and Keefer Street was hopping,” Eng said. “People were out on the patios. It reflects how much Chinatown has evolved as a destination; we have 60 food-services-related businesses in Chinatown, and about 20 were opened within the last 10 years. It’s not cheap Chinese food; we have some of the top restaurants and bars in the city.”
Some challenges that were magnified by the pandemic. The lack of consumer foot traffic and the community’s proximity to Downtown Eastside led to a migration of drug use, mental health problems and homelessness into the neighbourhood.
That, in turn, discouraged the community’s sizable elderly population from leaving their homes, Eng said. The result was a vicious circle where fewer consumers on the streets led to the closure of more businesses, which in turn further limited the number of shoppers in the area.
“So there’s two levels of fear at play here in the neighbourhood: the fear of COVID and the fear of safety and cleanliness,” Eng said, adding that graffiti “is a big part of that,” because it affects how people perceive the neighbourhood.
“What we found is that stores were opening for short hours because of the foot traffic, and that snowballs into itself because if you aren’t open, people won’t come down. That has been the biggest struggle – and continues to be the biggest struggle.”
Eng added that the City of Vancouver has been better in helping this month, sending more street cleanup crews to maintain the neighbourhood. But he urges municipal officials to continue such efforts and not “forget about Chinatown” or lump it in with nearby communities when managing the city’s planning and resources.
“As a community, we are easy to set aside because we haven’t been as vocal as some others,” Eng said, noting the BIA met with council in 2019 to speak on the issue. “The key is sustainability. You can do it one day, and the people would return and mark things up again. If you can’t do the cleaning regularly, then you really haven’t done your job. We have a pretty high tolerance point in Chinatown, but it has really hit a tipping point this past year.”
Eng said the marketing direction of the BIA has shifted to “demystifying Chinatown” – changing its image to a destination retail neighbourhood rather than the low-cost model traditionally borne by the community to draw more business from within Metro Vancouver.
“You can’t just sit around and wait for the future,” Eng said. “So we’ve been pivoting towards local markets; we are active on social media in targeting certain demographics within a certain distance of Chinatown, and it has been fairly effective.
And as more office workers return, many who live in Strathcona will resume their walking commutes to and from downtown, Eng said. That would be the key in bringing back a renewed sense of vitality to Chinatown that had been a signature for the neighbourhood prior to the pandemic.
“I think people may be itching to get out, so I have to say I’m hopeful for more people to return to our retail stretch on Pender Street,” he said. “That’s the heart of Chinatown. If you can get that revitalized, then the elderly will return because they are comfortable – and they are the face of Chinatown. And once the school at the Chinese Cultural Centre returns, it would really start to bring people back.” 

© 2021 Western Investor

Condo presales bounce back in downtown Vancouver

Frank O’Brien
Western Investor

After a three-year tax-induced slump, condo presales and new condo towers are rising again in the heart of Vancouver

After a three-year tax-induced slump, condo presales and new condo towers are rising again in the heart of Vancouver
After zero successful launches of presale condo projects in downtown Vancouver over the past three years, the only presale tower on the market saw 100 units sell in a two-day blitz in June.
The sudden resurgence has persuaded developer Amacon to launch presales at the Block, a hotel-anchored, 160-unit condo tower in the 100 block of Robson Street, and other stalled core projects are expected to restart.
“Downtown demand is about to surge,” said Ryan Lalonde, with the market research team at MLA Canada.
The downtown is catching up with suburban markets, which led a rally that saw 3,000 presale condos released in 20 new projects in June, the highest level since November of 2018, according to MLA.
Pattison Group and Reliance Properties kicked off sales of 2 Burrard Place in late June and sold more than 100 condos (out of 239 offered) in the first two days.
Urban Analytics said the early success of 2 Burrard Place is being watched by developers whose projects have been in limbo.
“Downtown Vancouver felt the brunt of government housing policies and taxes introduced in 2018, resulting in zero successful condo launches in the core since,” said Dillon Sangha, market and advisory manager at Urban Analytics.. “Developers tried to launch, but cancelled or delayed plans after failing to achieve sufficient sales.”
Those housing policies and taxes include Vancouver’s vacant home tax – which increased this year to 3% of a home’s assessed value; the B.C. speculation tax, which ranges from 0.5% to 2% of the property’s value; and an increase in the provincial foreign-homebuyer tax to 20%.
The arrival of COVID-19 early last year likely further eroded confidence in the suddenly quiet downtown market.
The first tower at the Pattison-Reliance mixed-use Burrard Place development at 1290 Burrard Street, the 60-storey One Burrard Place, sold out within weeks in 2015 and is nearing completion.
Sangha said swift sales at 2 Burrard Place can be attributed to partly to a unique mix of units that include “convertible” floorplans.
“The project offers smaller homes with living rooms that can convert to bedrooms at night, something that, to our knowledge, is a first for downtown,” said Sangha. “The project’s success demonstrates that demand we’ve seen in other parts of Metro Vancouver this year also exists in downtown and could open the door to additional project launches in the coming months.”
The smallest units in 2 Burrard Place are 435 square feet, but Jon Stovell, president and CEO of Reliance Properties, said smaller space does not equate to lower luxury standards.
“We’ve created two show-suites that demonstrate that living your best life is possible in a well-defined compact space,” he said.
2 Burrard Place residents will have an in-home control panel that gives them on-demand access to a butler, personal chef, and wine specialist, along with 30,000 square feet of comprehensive amenities like health and wellness spa facilities, a full-size lap pool, and yoga space, Stovell noted.
Prices at 2 Burrard Place start at $539,000, or about $1,240 per square foot. The larger units in the 36-storey tower range to 1,800 square feet.
“Downtown will always be a great investment,” said Stovell. “It is the hub for commercial, social and cultural activity, the heart of the city.”

© 2021 Western Investor

Surrey condo strata ordered to pay owners over $4,000 because it failed to investigate smoking complaints

Susan Lazaruk
The Vancouver Sun

Civil resolution tribunal found that because one of the owners had a disability made worse by second-hand smoke, the strata had a higher “duty to accommodate” her

 File photo: B.C.’s civil resolution tribunal ruled that the strata corporation at Parkview Gardens ‘failed to enforce its no-smoking and nuisance bylaws, despite numerous complaints.’ Photo by Tarasylo/ iStock /Getty Images P /PNG

A South Surrey couple was awarded over $4,000 by a B.C. court because their condo strata failed to properly investigate and address complaints about odours from a neighbour’s smoking and air-fresheners entering their unit.

 

The civil resolution tribunal ruled that the strata corporation at Parkview Gardens had a “duty to accommodate” owner Carol Cheslock’s physical disability — allergies, asthma, an eye condition that required surgery and respiratory problems — worsened by the cigarette and cannabis smoke and other odours that entered into her and her husband Andrew’s second-floor suite from the unit below.

“Mrs. Cheslock has a physical disability and provided medical notes stating the smoke and odours (were) aggravating her health conditions,” wrote tribunal vice-chairwoman Kate Campbell. “Under the B.C. human rights code, the strata therefore had a duty to accommodate Mrs. Cheslock to the point of undue hardship.”

Campbell found the “strata failed to enforce its no-smoking and nuisance bylaws, despite numerous complaints” and the “strata had a higher duty to investigate … in these circumstances than it would have had if there were no issue of disability under the code.”

 

The Cheslocks told the tribunal that the strata refused to consider their complaints as the months passed by and was “colluding” with the owner of the other unit, Shannon Perka, to “make sure the bylaws were not enforced against her.”

The Cheslocks first complained about the smell of smoke coming from Perka’s unit in August 2018, before the strata officially banned smoking, in December 2018. They said the smell entered their suite through the fireplace, windows, electric heaters and from under the kitchen sink.

Early in 2020, they complained about “sweet” and “toxic” odours that appeared to come from air-fresheners or essential-oil diffusers. And “G.W.”, the owner of the suite next to Perka’s, sent six letters to the strata complaining of a “sickly sweet smell” that burned her eyes and made her vomit.

 

Also, a plumber who did work in the Cheslocks’ suite noted on his invoice an “extreme perfume odour.”

The strata at first sent letters to Perka in August 2018 and in July 2020, threatening fines if the smells didn’t stop. In August 2020, it imposed a $50 fine for “bylaw breach.” But a month later, it reversed the fine because “there was no conclusive evidence of bylaw breach.”

Campbell said simply conducting a sniff test didn’t adequately investigate the complaints because a 2016 human rights tribunal had ruled in a similar case that a strata must carry out a number of steps to investigate second-hand smoke if a complainant has a disability, including gathering information, calling in an expert, investigating possible solutions and determining whether a strata can accommodate the disability.

 

Campbell also noted an owner has a right to have her complaints handled in a respectful manner and noted that a council member, identified only as L.S., had emailed derogatory comments about the Cheslocks, including calling them “troublemakers” and suggesting Perka could “give the Cheslocks ‘the finger’ as she left the strata for the final time.”

The Cheslocks had named Perka and the strata as respondents in the lawsuit but Campbell dismissed the claim against Perka because she wasn’t responsible for duties under the human rights code or strata property act.

But Campbell ruled the strata must reimburse the Cheslocks $79.59 for a fan purchased in August 2020 (but not a $650 air-purifier bought in September 2018); $156.59 for a night’s hotel stay when Carol Cheslock was recovering from eye surgery; and $4,000 in damages for “pain, suffering, anxiety and loss-of-dignity (they had asked for $5,000 in damages).

The strata council or property management company couldn’t be reached, and Perka didn’t return a request for comment. The Cheslocks declined to comment.

© 2022 Vancouver Sun

The GTA Market is Moderating from Record-Breaking to Robust: TRREB

Rachel Rehkopf
other

Sales volume of Real Estate experiencing Slight moderation

The GTA Market is Moderating from Record-Breaking to Robust: TRREB

The June numbers from the Greater Toronto Area have been released, showing that the red-hot conditions seen earlier in this spring have firmly tapered off, but are still heated compared to historical market conditions.

 

A total of 11,106 homes traded hands last month, according to the Toronto Regional Real Estate Board, down 7% from May, and 29% below March, the peak of this year’s spring market. This slight slowdown is still up 28% from June of last year, but has resulted in a small dip in prices. The average home in the GTA last month sold for $1,089,536, dropping 2% to under the $1.1 million mark seen in May.

Buyers Take Note, the Market is Moderating

With fewer sales in June than seen in previous months this spring, the GTA market is experiencing a slight moderation from the record-breaking results seen earlier in the year.

 

While the market is still firmly in seller’s market territory, with a sold to new listing ratio of 66.2% in June, homes are taking a little longer to sell and selling closer to their asking price when compared to the hottest parts of this year’s spring market. The average number of days a property sat on the market in June was 13, 3 days more than March’s low. In addition, the average home sold for 105% of its listing price, down from 107% recorded in March. Both of these signs point towards a more moderate buying experience. 

According to TRREB President, Kevin Crigger, the board anticipates that this moderation is not here to stay. “We have seen market activity transition from a record pace to a robust pace over the last three months. While this could provide some relief for home buyers in the near term, a resumption of population growth based on immigration is only months away,” he explains.

 

For buyers who have been on the fence about purchasing in the record-breaking, frenzied spring market we saw this year, this slight slow down presents a great opportunity to capitalize on friendlier buying conditions.

 

“Currently, we are noticing a lot fewer bidding wars than we were earlier this year. A lot of buyers have put their search on hold until the fall to try and enjoy the summer since the lockdown has eased up. But, with many of these buyers waiting until the fall to purchase, we could see conditions this fall return to the hyper-competitive landscape we saw this spring, with rapid price increases and intense bidding wars,” explains Zoocasa Sales Representative, Anthony Tomasone.

 

“Savvy buyers will see this temporary slow down as an opportunity to get into the market while their competition is at the beach or a patio. If this is you, it’s worth contacting an agent that can help you take advantage of the market moderating before the other buyers return to the market.”

Thinking of capitalizing on this market slow down?

Connect with a Zoocasa agent to build your buying strategy

 

Even Fewer Homes on the Market Will Continue to Put Pressure on Prices

Lack of supply has been a contributor to the red-hot market we saw this spring, and June’s data shows this problem is continuing. Only 16,189 new units were listed in the GTA last month, which is down 13% from May. The total number of active listings was also down from last month, decreasing 8% to a total of 11,297. Both of these factors continue to keep competition strong for buyers, where choice and options on the market are limited.

 

TRREB reports that “in all major market segments, year-over-year growth in sales well outpaced growth in new listings over the same period, pointing to the continuation of tight market conditions characterized by competition between buyers and strong price growth.”

This means that even though market conditions are moderating from the peak seen in early spring, buyers will still experience the impacts of low inventory and won’t be seeing significant price decreases until supply or demand change dramatically.

 

The City of Toronto, Peel, and York Region saw a minor decline in prices last month – down 3%, 1%, and 4% respectively. Similar to trends seen throughout the spring market, the regions with the strongest price gains were farther from the city core. Halton, Durham, and Dufferin have all seen prices rise 2% from May, and in Simcoe prices are up 5%.

Historically, June was a Strong Month with a Seasonally-Expected Slow Down

Sales volume, although up 28% from this time last year, slowed 7% in June compared to more recent months. Although this makes June the slowest month in this year’s spring market, historically, the number of sales seen this month are high. With 11,106 sales happening last month it was the highest June on record since 2016.

 

This tells us that although the market has slowed, the meaning of this is relative to the record-breaking, red-hot pace we saw throughout the spring of 2021. Compared to the rest of the GTA’s history, it was still a busy month in real estate.

 

Seeing lower sales volumes and a small decrease in pricing in June compared to May is seasonally expected in the usual spring market, since in normal years, May is typically the busiest month. Although in earlier days of the pandemic, the shock of this global event caused the usual seasonal markets to take place at different times than we’re used to seeing, June’s slow down could be a signal that we’re returning to more predictable real estate seasons. 

 © 2015 – 2020 Zoocasa Realty Inc

Toronto home sales hit lowest point in a year

Ari Altstedter
Mortgage Broker News

Toronto saw the lowest number of homes trade hands in a year in June as the pandemic-fuelled demand that drove the market to record highs starts to fade with immigration still muted.
Home sales in Canada’s largest city fell 9.1% in June from the month before to 8,885 transactions, the third consecutive monthly decline, according to data released Tuesday by the Toronto Regional Real Estate Board. Despite the declining number of sales the seasonally adjusted average price of a home remained virtually unchanged last month at CA$1.06 million, the data show.
The COVID-19 pandemic helped make Canada’s housing market among the hottest in the world over the last year as record low mortgage rates and increased demand for larger living spaces ran up against the persistent shortage of housing stock that has long plagued its largest cities. But now with lock down measures easing, vaccinations rising, and the economy picking up, the circumstances that created the boom are starting to ease, and the immigration-driven population growth that has long underpinned the country’s housing market remains muted.
“The record pace of sales has run its course as pent-up demand has increasingly been satisfied in the absence of normal population growth,” said Jason Mercer the Toronto real estate board’s chief market analyst, in a media release accompanying the sales data. “With this said, a persistent lack of inventory across most segments of the market will keep competition between buyers strong.”
Vancouver, Canada’s priciest home market, showed a similar decline in June home sales from the previous month, though activity both there and in Toronto remains above where it was a year ago and elevated by historical standards. Toronto’s record start to the year caused that city’s real estate board to raise its forecast for average home prices to CA$1.07 million from the CA$1.025 million it predicted in February.
Also in Toronto, in a reversal of the pattern seen for much of the last year, annual growth in condominium sales in June outpaced the sales growth for all types of ground-based homes, suggesting interest may be returning for the denser housing types the pandemic put out of favor, but are often the first choice of immigrants newly arrived to the country.
“We have seen market activity transition from a record pace to a robust pace over the last three months,” said the Toronto real estate board’s president, Kevin Crigger, in the press release. “While this could provide some relief for home buyers in the near term, a resumption of population growth based on immigration is only months away.”

Copyright © 2021 Key Media